Understanding California’s Lemon Law Buyback Option

  1. Lemon Law
  2. Understanding California’s Lemon Law Buyback Option

We all dread the idea of buying a “lemon” when we purchase a new vehicle. When your vehicle is not operating properly, it significantly impacts your life. Not only does it slow you down, it costs you valuable time and money. Fortunately, California has lemon laws that were created to protect the consumer against faulty automobiles. In certain instances, taking advantage of the California Lemon Law Buyback provision is the best option for a consumer to get rid of the troublesome vehicle and move forward with life.

Under California’s Lemon Laws, a consumer who buys a vehicle under warranty that later develops a significant defect, may be eligible to take advantage of the buyback provision. To understand if you are eligible for the California Lemon Law Buyback, it is important to confer with an attorney experienced in this area of the law, but below are a few things to consider.

It is important to understand that your car, truck or SUV is only eligible for the buyback if the manufacturer is unable to repair the problem in a “reasonable” number of attempts. What qualifies as a reasonable number of attempts to repair the defect can differ depending upon the circumstances. For example, if the repair is needed for a life-threatening defect, fewer opportunities to repair the defect are needed. If the defect is not life-threatening or is a minor issue, the manufacturer may be afforded more attempts to fix the problem.

If your vehicle qualifies for the buyback, the manufacturer has the following two options:

● Offer a replacement vehicle, or

● Buyback the defective vehicle.

With the assistance of your California Lemon Law attorney, you may also receive compensation for incidental damages that you suffered as a result of the faulty vehicle.

Replacement of Faulty Vehicle

If you choose to have the manufacturer replace the defective vehicle with a replacement, it ideally is an identical car, truck or SUV, but without any defects. While there may be some circumstances where an identical vehicle cannot be provided, the replacement must include all warranties. In other words, the replacement vehicle will be covered by the full warranty period, so the consumer is fully protected again. Additionally, the manufacturer is liable to pay the incidental charges (such as taxes, registration, licensing fees, etc.) that are associated with the vehicle sale to you.

Buyback of Vehicle

If replacement of the vehicle is not an option, the manufacturer will repurchase the faulty vehicle from the consumer. The buyback price is typically the amount you paid or that is payable for the vehicle, less a mileage offset. Your Lemon Law attorney can explain how the mileage offset is calculated, but the manufacturer will pay you for any down payment you made, the monthly payments that you made toward the vehicle, and the remaining loan value. The manufacturer must also reimburse the consumer for incidental damages and taxes, registration fees and any other official fees paid by the consumer.

If you think your vehicle may qualify for the California Lemon Law Buyback option, or you have questions regarding lemon law, contact the Law Offices of Alex Cha & Associates today. We are highly experienced in handling lemon law matters and we can answer all your questions. Schedule your appointment today.

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